Report: The Future Of The U.S. Economy Will Depend On The Country's Hispanic Market By Way of Their Increasing Demographics

04/18/2012 08:40 am ET

130

Latinos are key players in the American economy. But while the present U.S. economy benefits from Hispanics, the future U.S. economy is likely to depend on the Hispanic market, according to "State of the Hispanic Consumer: The Hispanic Market Imperative" a report released in April by Nielsen, a global marketing and advertising research company.

According to the report, the Hispanic market’s size and buying power of $1 trillion in 2010 is projected to have a 50 percent increase up to $1.5 trillion by 2015.

A look at the growing and ever changing demographics in the Hispanic population in the country is key to understanding the future of the U.S. economy.

"The Hispanic community in the United States is large and growing, and businesses must make strides to understand and engage these consumers," said Susan Whiting, vice chair of Nielsen, according to Market Watch.

"Due to the general youth of this segment, family focus, strong culture and prevalent Spanish-language use, Hispanic consumers are impacting all areas of work and play and helping to redefine American culture in the 21st century."

A report released in February by the Pew Hispanic Center revealed that 8.1 of Hispanic women in the United States have given birth in the last year, while only 5.9 percent of white women have done the same.

Instead, retro-acculturation is taking place, as many Latinos reach back into their roots for a sense of identity. While second and third generation Hispanics are adapting to U.S. culture and customs, they still maintain strong attachment to Latino traditions and value systems. Hispanics in the U.S. experience a strong sense of cultural pride.

As for consumption trends, Nielsen found that Latinos differ in that regards to their white counterparts. While Hispanics tend to shop less often they tend to spend more per trip and are less likely to buy products at promotional prices.